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how much does a detached garage increase home value

How Much Does a Detached Garage Increase Home Value?

Want to see your home’s value increase with one strategic upgrade? A detached garage can be one of the best investments you make to increase your home's value. With coveted off-street parking, flexible storage space, and design flexibility, a detached garage brings a handsome return on investment. But how big of a value boost does it actually provide?

The answer often surprises homeowners. While the increase depends on various factors, you can expect to add approximately 5% to 15% of your home's current market value by constructing a detached garage. Sounds interesting, right? Read to discover expert insights on how a detached garage can significantly boost your property value.

gray duramax metal detached garage

Key Takeaways

  • Two-car detached garages add 8% to 12% value on average. Larger garages add 12% to 15%.

  • Many factors impact value boosts like garage size, construction quality, and market conditions.

  • While detached garages increase value, make sure returns justify costs for your situation.

  • Alternatives like attached garages and pre-fab kits provide lower-cost options.

Key Factors That Determine the Value Increase

Many variables affect the boost a detached garage provides to your property value. The main factors include:

Size of the Garage

The larger the detached garage, the more value it will add to the home. A two or 3 car garage building provides more usable space and storage capacity compared to a single-car garage. Homebuyers looking for extra space to park multiple vehicles, store tools, and equipment, or use as a personal workshop will pay a premium for a spacious detached garage.

Quality of Construction

A detached garage built with high-quality materials and finishes will boost value more than a basic unfinished structure. Details like brick or stone façades, upgraded garage doors, finished interiors with drywall and insulation, and amenities like windows and electricity make the garage more functional and visually appealing. Quality construction also makes the garage more durable.

Garage Amenities

Adding amenities like heating, air conditioning, plumbing, cabinetry, and other custom features increases the functionality and enjoyment of the detached garage. Finished interiors, insulation, and climate control allow the garage to be used year-round for hobbies, storage, and entertaining. The more livable and useful the space, the more value it contributes.

Garage Location

The ideal placement of a detached garage is close to the main house and facing the street. This provides convenience for unloading vehicles and gives the front of the home added curb appeal. Corner lot placement and access from an alley or side street also provide appeal by keeping vehicles out of the main driveway area.

Real Estate Market Conditions

Favorable real estate markets where home prices are increasing and housing demand is strong provide ideal conditions for a detached garage to boost property value. In competitive markets with more buyers than sellers, key amenities like a detached garage command a higher price premium.

detached garage with double doors

How Detached Garage Size Impacts Added Value

The size of your detached garage significantly influences the value boost it provides. Larger garages add more value:

1-Car Detached Garages

A basic 12x24 or 14x24 single car garage adds approximately 5% to 8% to your property value. Though modest in size, it still provides parking on the property vs off-street parking.

2-Car Detached Garages

The most popular option, two car garage kits (typical size 24x24) add the average 8% to 12% value boost discussed above. Two-car garages maximize ROI while keeping costs lower than larger options.

3-Car (or Larger) Detached Garages

For those needing ample parking and storage, 3-car detached garages (36x24) can increase home value by 12% to 15%. The significant size and storage capacity merits a higher value despite the greater costs.

To maximize your return, carefully consider how much garage space you actually need. A 2-car option often provides the ideal balance of added value and cost.

detached garage with double door on a lawn

How Much Does It Cost to Build a Detached Garage?

Beyond the value a garage adds, an equally important consideration is the cost to build. Garage construction costs typically run $35-$60 per square foot depending on the materials/amenities you choose.

Basic Framing Package

For a basic unfinished 2-car garage with no frills, you'll spend around $15,000 to $22,000. This includes:

Finished Garage With Amenities

Opting for a finished garage with insulation, drywall, heat, electricity, and other amenities will run $25,000 to $40,000 for a 2-car size. The higher-end costs account for premium materials and finishes.

Other items that increase garage costs include permits, grading prep work, and any demolition of existing structures. Be sure to factor these into your budget.

The overall cost of a detached garage depends on several key factors, summarized in the table below:

Factor Impact on Cost
Size Larger is more expensive
Materials Premium materials cost more
Finished interior Adds $10k-$20k to cost
Permits Average $500-$2,000
Site prep work Can add thousands


How Adding a Detached Garage Can Increase Your Home's Value

A detached garage adds value to a home in many ways beyond increasing the sale price. Here are some of the key benefits:

Curb Appeal & Off-Street Parking

Curb appeal is a major driver of home value. A detached garage provides coveted off-street parking, getting cars and clutter out of the main driveway. This cleans up the view from the street, showcasing thoughtful design. Surveys show that 98% of new home buyers want a garage, so a detached garage boosts appeal.

Flexible Storage & Living Space

Detached garages provide homeowners with flexible space that can be utilized as workshops, hobby rooms, home gyms, guest quarters, entertaining areas, and more. Insulating and finishing the interior allows for comfortable year-round use. Homeowners can customize the space to fit their needs.

Custom Design Options

Unlike attached garages, detached structures allow greater flexibility in design options. Homeowners can customize the size, height, placement, roof design, materials, and architectural detailing to complement the aesthetics of their home. Detached garages can reflect unique personal style.

Here is a quick breakdown of the pros and cons of a detached garage: 

Pros Cons
Adds significant value Higher upfront cost
Provides flexible space Requires permitting
Improves curb appeal Site prep work needed
Custom design options Hiring contractor advised
Coveted by homebuyers Maintenance required


Alternatives to Building a Detached Garage

While detached garages provide excellent value, other options exist:

Attached Garages

Attached garages are usually less expensive to build compared to detached garages. They also provide more convenient access to the house. However, attached garages don't boost property value as significantly as detached structures. They are less flexible in terms of design, size, and placement. Attached garages may make sense if boosting resale value is not a priority.

Converting Existing Structures

Some homeowners opt to convert existing structures into garages. This can include converting a barn, shed, or other outbuilding into a garage space. The cost is usually minimal compared to new construction. However, zoning laws may restrict garage conversions on certain properties. Converted garages also won't match the design of the home as seamlessly as a new custom garage.

Pre-Fab Garage Kits

For budget-focused homeowners, pre-fabricated metal garage kits offer an affordable alternative. While they do not boost value as significantly as custom-built garages, pre-fab kits can still be a wise investment. Easy DIY installation cuts labor costs. Just keep in mind limitations in size, design options, and durability compared to custom garages.

When weighing your options, be sure to consider all the factors that matter most to you. Reading our in-depth buyer's guide for detached garages can provide helpful perspectives.

detached garage with double door and a single door entry on the side


Adding a detached garage ranks among the most profitable investments for homeowners looking to increase property value. With ample parking, storage, and flexible use, detached garages bring top-dollar ROI compared to many other home upgrades.

Carefully weighing costs versus value added will help you make the optimal choice. But in most cases, building a high-quality detached garage generates excellent returns, making it one of the wisest improvements you can make. Your home's boosted curb appeal, functionality, and marketability will quickly offset the costs and pay dividends when you eventually sell.


How much does finishing the interior increase the detached garage cost?

Finishing the interior of a detached garage with drywall, insulation, lighting, utilities, and other enhancements can add $10,000-$20,000 or more to the total project cost. The exact price increase depends on the garage's size and the types of amenities and finishes you want to include.

Do permits add a lot to garage construction costs?

Permit costs are usually $500-$2,000 depending on location. Not a major cost factor.

How soon after building a garage will my home value increase?

It often boosts your home's value as soon as construction is fully completed and inspected.

Should I build the garage myself or hire a contractor?

Hiring a qualified contractor to build your detached garage is usually the best option. Contractors handle zoning approvals, permits, sourcing materials, and construction based on code requirements and best practices.

Can adding a detached garage increase the resale value of my home?

Yes, adding a detached garage can increase the resale value of your home. It adds both functionality and aesthetic appeal, making your property more desirable to potential buyers.

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About The Author

Andy Wu - Resident Expert

Andy Wu - Resident Expert

Andy Wu is the resident backyard products expert and hails from Atlanta, Georgia. His passion for crafting outdoor retreats began in 2003.

As a fellow homeowner, he founded Backyard Oasis to provide top-quality furnishings and equipment, collaborating with leading manufacturers.

His main focus is on sheds and generators!

In his spare time he like to hike the tallest mountains in the world and travel with his family.

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